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LATEST NEWS UPDATES | How two-wheeler dreams died in the countryside -Alisha Sachdev

How two-wheeler dreams died in the countryside -Alisha Sachdev

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published Published on Jun 9, 2022   modified Modified on Jun 19, 2022

-Livemint.com

Industry estimates suggest two-wheeler sales for fiscal year 2021-22 (FY22) will close out at 14.5 million units, the lowest volume in almost a decade. This betrays a deep distress in incomes of rural households. Mint explains the fault lines:

* Why are two-wheeler sales falling?

Rural demand contributes 50-60% of two-wheeler sales in the commuter segment. Price increases, rising fuel prices and unseasonal rains leading to poor crop realizations have hit the rural population. The second wave of the coronavirus pandemic also led to significant health expenses for poorer households, resulting in poor liquidity. While urban India has been more successful in regaining pre-covid livelihoods, rural residents, daily wage workers and those in the unorganized sectors have fared much worse, and have deferred discretionary spending on vehicles.

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Livemint.com, 9 February, 2022, https://www.livemint.com/auto-news/what-two-wheeler-sales-tell-us-about-rural-distress-11644344049676.html


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